Solarvest secures five CGPAs under CGPP totaling 60 MWac including Micron Technology and Bursa Malaysia
By Sustainability Matters August 11, 2024
- Signs 5 CGPAs to empower businesses’ sustainability through asset ownership
- Secures 21 years recurring annual income on commissioning of the solar plant
Solarvest Holdings Bhd has secured five separate Corporate Green Power Agreements (CGPAs) with a Malaysian multi-asset exchange, two global leading semiconductor manufactures, and a leading global data center service provider (collectively referred to as Corporate Consumers) under the Corporate Green Power Programme (CGPP). These agreements are made through two joint ventures: one with Savelite Engineering Sdn Bhd and TNB Renewables Sdn Bhd, and another solely with TNB Renewables Sdn Bhd.
Under these CGPAs, Solarvest and partners, as the Solar Power Producers (SPP), will undertake the ownership and development of two solar power plants located in Lumut, Perak and Kulim, Kedah. Meanwhile, the Corporate Consumers will collectively offtake a combined electricity capacity of 59.98 megawatts (MWac) generated from the solar power plant for 21 years, with a contract for difference mechanisms at an agreed pricing.
[MWac refers to the capacity a plant can deliver to the grid after accounting for energy losses during the DC-AC conversion.]
The CGPP represents the Malaysian government’s commitment to advancing the nation’s energy transition. Through a CGPA model, the CGPP offers corporations the opportunity to procure virtual renewable electricity, eliminating the necessity to install solar photovoltaic assets on their premises. By participating in the CGPP, corporate consumers can obtain bundled Renewable Energy Certificates (RECs), verifying the origin of electricity from renewable energy resources in supporting their sustainability goals and commitments.
Executive Director and Group CEO of Solarvest, Davis Chong Chun Shiong said, “The CGPP marks a significant stride towards a more open and competitive energy market in Malaysia as driven by the principle of demand and supply. Leveraging our established track record in developing utility-scale projects, we are confident in fulfilling our role as a Solar Power Producer, providing our Corporate Consumers with sustainable energy solutions to advance their sustainability goals.”
The signed CGPAs, each with a tenure of 21 years, will strengthen Solarvest recurring income stream from the sales of electricity generated by the two solar power plants. To recap, Solarvest and its consortiums have been awarded with a total export capacity of 90 MWac under the CGPP by the Energy Commission of Malaysia.
Corporate Vice President, Assembly & Test NAND Operations, Micron Technology, Amarjit Sandhu said, “As memory and storage continue to fuel future technologies, our participation in the CGPP reinforces our commitment to building a greener and more sustainable future, while driving innovation in the semiconductor industry. Micron continues to be a responsible Malaysian corporate stakeholder committed to the green energy and energy transition priorities set out in the National Energy Policy 2022-2040 and the National Energy Transition Roadmap."
Director, Group Sustainability for Bursa Malaysia, Dr Hezri Adnan said, “Sustainability plays an integral part of Bursa Malaysia’s agenda. We recognise our responsibility to influence capital market participants towards sustainable practices. We strive to lead by example and will continue to actively mitigate our climate impact through various approaches.”
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